Income Tax Act,
1961:Notifications under section 90:Convention between the Government of the
Republic of India and the Government of the Republic of Trinidad and Tobago for
the avoidance of double taxation and the prevention of fiscal evasion with
respect to taxes on income.

Notification
No. G.S.R. 720(E),dtd.26.10.1999

Whereas
the annexed Convention between the Government of the Republic of India and the
Government of the Republic of Trinidad and Tobago for the avoidance of double
taxation and the prevention of fiscal evasion with respect to taxes on income
has entered into force on the thirteenth day of October, 1999, thirty days
after the receipt of the later of the notifications by both the Contracting
States to each other of the completion of the procedures required under their
laws for bringing into force of the said Convention in accordance with Article
29 of the said Convention;

Now,
therefore, in exercise of the powers conferred by section 90 of the Income-tax
Act, 1961 (43 of 1961), the Central Government hereby directs that all the
provisions of the Convention shall be given effect to in the Union of India.

CONVENTION
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE
REPUBLIC OF TRINIDAD AND TOBAGO FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The
Government of the Republic of India and the Government of the Republic of
Trinidad and Tobago desiring to conclude a Convention for the avoidance of
double taxation and the prevention of fiscal evasion with respect to taxes on
income and with a view to promoting economic co-operation between the two
countries have agreed as follows:

ARTICLE
1

Personal
Scope

This
Convention shall apply to persons who are residents of one or both of the
Contracting States.

ARTICLE
2

Taxes
Covered

1.This Convention shall
apply to taxes on income imposed on behalf of a Contracting State or of its
political sub-divisions or local authorities irrespective of the manner in
which they are levied.

2.There shall be
regarded as taxes on income all taxes imposed on total income or on elements of
income including taxes on gains from the alienation of movable or immovable
property, taxes on the total amounts of wages or salaries paid by enterprises,
as well as taxes on capital appreciation.

3.The existing taxes
which are the subject of this Convention are:

a.in the case of
Trinidad and Tobago, the corporation tax, the income-tax, the unemployment levy
and the petroleum profits tax (hereinafter referred to as "Trinidad and
Tobago tax");

b.in the case of India,
the income-tax, including any surcharge thereon (hereinafter referred to as
"Indian tax").

1.

2.

3.

4.This Convention shall
apply also to any identical or substantially similar taxes which are imposed by
a Contracting State after the date of signature of this Convention in addition
to, or in place of, the taxes referred to in paragraph 3. The competent authorities
of the Contracting States shall notify each other of any substantial changes
which have been made in their respective taxation laws.

ARTICLE
3

General
Definitions

1.For the purposes of
this Convention, unless the context otherwise requires:

a.the term 'Trinidad
and Tobago" means the Archipelagic State of Trinidad and Tobago,
comprising the several islands of Trinidad and Tobago, its archipelagic waters,
territorial sea and the airspace thereof, together with the adjacent submarine
areas of the Exclusive Economic Zone and the continental shelf beyond the
territorial sea over which Trinidad and Tobago exercises sovereign or other
rights in accordance with the laws of Trinidad and Tobago and with
international law;

b.the term
"India" means the territory of India and includes the territorial sea
and airspace above it, as well as any other maritime zone in which India has
sovereign rights, other rights and jurisdiction, according to the Indian law
and in accordance with international law, including the UN Convention on the
Law of the Sea;

c.the terms "a
Contracting State" and "the other Contracting State" mean the
Republic of Trinidad and Tobago or the Republic of India, as the context
requires;

d.the term
"person" includes an individual, a company, a body of persons and any
other entity which is treated as a taxable unit under the taxation laws in
force in the respective Contracting States;

e.the term
"company" means any body corporate or any entity which is treated as
a body corporate for tax purposes;

f.the terms
"enterprise of a Contracting State" and "enterprise of the other
Contracting State" mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a resident of
the other Contracting State;

g.the term "international
traffic" means any transport by ship or aircraft operated by an enterprise
which is a resident of a Contracting State, except when the ship or aircraft is
operated solely between places in the other Contracting State;

h.the term
"competent authority" means:

i.in
the case of Trinidad and Tobago, the Minister to whom the responsibility for
Finance is assigned or his authorized representative;

ii.in
the case of India, the Central Government in the Ministry of Finance
(Department of Revenue) or their authorised representative;

a.

b.

c.

d.

e.

f.

g.

h.

i.the term
"national" means:

i.any
individual possessing the nationality of a Contracting State;

ii.any
legal person, partnership or association deriving its status as such from the
laws in force in a Contracting State;

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.the term "fiscal
year" means:

i.in
the case of Trinidad and Tobago, the "year of income" as defined in
section 2(1) of the Income-tax Act, Chapter 75:01;

ii.in
the case of India, "previous year" as defined under section 3 of the
Income-tax Act, 1961;

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.the term
"tax" means Trinidad and Tobago tax or Indian tax, as the context
requires, but shall not include any amount which is payable in respect of any
default or omission in relation to the taxes to which this Convention applies
or which represents a penalty or fine imposed relating to those taxes.

1.

2.In the application of
this Convention by a Contracting State, any term not defined herein shall,
unless the context otherwise requires, have the meaning which it has under the
laws of that contracting State relating to the taxes which are the subject of
this Convention.

ARTICLE
4

Resident

1.For purposes of this
Convention, the term "resident of a Contracting State" means any
person who, under the laws of that State is liable to tax therein by reason of
his domicile, residence, place of management or any other criterion of a
similar nature.

2.Where by reason of
the provisions of paragraph 1 an individual is a resident of both Contracting
States, then his status shall be determined as follows:

a.he shall be deemed to
be a resident of the State in which he has a permanent home available to him;
if he has a permanent home available to him in both States, he shall be deemed
to be a resident of the State with which his personal and economic relations
are closer ("centre of vital interests");

b.if the State in which
he has his centre of vital interests cannot be determined, or if he has not a
permanent home available to him in either State, he shall be deemed to be a
resident of the State in which he has a habitual abode;

c.if he has a habitual
abode in both States or in neither of them, he shall be deemed to be a resident
of the State of which he is a national;

d.if he is a national
of both States or of neither of them, the competent authorities of the
Contracting States shall settle the question by mutual agreement.

1.

2.

3.Where by reason of
the provisions of paragraph 1 a person other than an individual is a resident
of both Contracting States, then it shall be deemed to be a resident of the
State in which its place of effective management is situated. If the State in
which its place or effective management is situated cannot be determined, then
the competent authorities of the Contracting State shall settle the question by
mutual agreement.

ARTICLE
5

Permanent
Establishment

1.For the purposes of
this Convention, the term "permanent establishment" means a fixed
place of business through which the business of an enterprise is wholly or
partly carried on.

2.The term
"permanent establishment" includes especially:

a.a place of management;

b.a branch;

c.an office;

d.a factory;

e.a workshop;

f.a warehouse in
relation to a person providing storage facilities for others:

g.a sales outlet;

h.a mine, an oil or gas
well, a quarry or any other place of extraction of natural resources;

i.a drilling rig or
ship used for, or in connection with, the exploration or development of natural
resources;

j.a dredging project;

k.a farm, plantation or
other place where agricultural, forestry, plantation or related activities are
carried on; and

l.a building site or construction
or assembly project or supervisory activities in connection therewith only if
such site, project or activity last more than nine months.

1.

2.

3.Notwithstanding the
preceding provisions of this Article the term "permanent
establishment" shall be deemed not to include:

a.the use of facilities
solely for the purpose of storage, display delivery of goods or merchandise
belonging to the enterprise;

b.the maintenance of a
stock of goods or merchandise belonging to the enterprise solely for the
purpose of storage, display or delivery;

c.the maintenance of a
stock of goods or merchandise belonging to the enterprise solely for the
purpose of processing by another enterprise;

d.the maintenance of a
fixed place of business solely for the purpose of purchasing goods or
merchandise or of collecting information, for the enterprise;

e.the maintenance of a
fixed place of business solely for the purpose of carrying on, for the
enterprise, any other activity of a preparatory or auxiliary character;

f.the maintenance of a
fixed place of business solely for any combination of activities mentioned in
sub-paragraphs (a) to (e), provided that the overall activity of the fixed
place of business resulting from this combination is of a preparatory or
auxiliary character.

1.

2.

3.

4.Notwithstanding the
provisions of paragraphs 1 and 2, where a person, other than an agent of an
independent status to whom paragraph 6 applies, is acting in a Contracting
State on behalf of an enterprise of the other Contracting State, that enterprise
shall be deemed to have a permanent establishment in the first-mentioned
Contracting State in respect of any activities which that person undertakes for
the enterprise, if such person:

a.has and habitually
exercises in that State an authority to conclude contracts in the name of the
enterprise, unless the activities of such person are limited to those mentioned
in paragraph 3 which, if exercised through a fixed place of business, would not
make this fixed place of business a permanent establishment under the
provisions of that paragraph; or

b.has no such authority
but habitually maintains in the first-mentioned State a stock of goods or
merchandise from which he regularly delivers goods or merchandise on behalf of
the enterprise; or

c.habitually secures
orders in the first-mentioned State, wholly or almost wholly for the enterprise
itself or for the enterprise and other enterprises controlling, controlled by,
or subject to the same control, as that enterprise.

1.

2.

3.

4.

5.Notwithstanding the
preceding provisions of this Article an insurance enterprise of a Contracting
State shall, except in regard to re-insurance, be deemed to have a permanent
establishment in the other Contracting State if it collects premiums in the
territory of that other State or insures risks situated therein through a
person other than an agent of an independent status to whom paragraph 6
applies.

6.An enterprise shall
not be deemed to have a permanent establishment in a Contracting State merely
because it carries on business in that State through a broker, general
commission agent or any other agent of an independent status, provided that
such person is acting in the ordinary course of their business. However, when
the activities of such an agent are devoted wholly or almost wholly on behalf
of that enterprise, he will not be considered an agent of an independent status
within the meaning of this paragraph.

7.The fact that a
company which is a resident of a Contracting State controls or is controlled by
a company which is a resident of the other Contracting State, or which carries
on business in that other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a permanent
establishment of the other.

ARTICLE
6

Income
from Immovable Property

1.Income derived by a
resident of a Contracting State from immovable property (including income from
agriculture or forestry) situated in the other Contracting State may also be
taxed in that other State.

2.The term
"immovable property" shall have the meaning which it has under the
laws of the Contracting State in which the property in question is situated.
The term shall in any case, include property accessory to immovable property,
livestock and equipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply, usufruct of
immovable property and rights to variable or fixed payments as consideration
for the working of, or the right to work, mineral deposits, sources and other
natural resources; ships, boats, motor vehicles and aircraft shall not be
regarded as immovable property.

3.The provisions of
paragraph 1 shall apply to income derived from the direct use, letting, or use
in any other form of immovable property.

4.The provisions of
paragraphs 1 and 3 shall also apply to the income from immovable property of an
enterprise and to income from immovable property used for the performance of
independent personal services.

ARTICLE
7

Business
Profits

1.The profits of an
enterprise of a Contracting State shall be taxable only in that State unless
the enterprise carries on business in the other Contracting State through a
permanent establishment situated therein. If the enterprise carries on business
as aforesaid, the profits of the enterprise may also be taxed in the other
State but only so much of them as is attributable to that permanent
establishment.

2.Subject to the
provisions of paragraph 3, where an enterprise of a Contracting State carries
on business in the other Contracting State through a permanent establishment
situated therein, there shall in each Contracting State be attributed to that
permanent establishment the profits which it might be expected to make if it
were a distinct and separate enterprise engaged in the same or similar
activities under the same or similar conditions and dealing wholly
independently with the enterprise of which it is a permanent establishment.

3.In determining the
profits of a permanent establishment, there shall be allowed as deductions
expenses which are incurred for the purposes of the business of the permanent
establishment, including executive and general administrative expenses so
incurred, whether in the State in which the permanent establishment is situated
or elsewhere, in accordance with the provisions of and subject to the
limitations of the laws of that State.

4.No profits shall be
attributed to a permanent establishment by reason of the mere purchase by that
permanent establishment of goods or merchandise for the enterprise.

5.For the purposes of
the preceding paragraphs, the profits to be attributed to the permanent
establishment shall be determined by the same method year by year, unless there
is good and sufficient reason to the contrary.

6.Where profits include
items of income which are dealt with separately in other Articles of this
Convention, then the provisions of those Articles shall not be affected by the
provisions of this Article.

ARTICLE
8

Shipping
and Air Transport

1.Profits derived by an
enterprise of a Contracting State from the operation of ships or aircraft in
international traffic shall be taxable only in that State.

2.Profits derived by a
transportation enterprise which is a resident of a Contracting State from the
use, maintenance, or rental of containers (including trailers and other
equipment for the transport of containers) used in the transport of goods or
merchandise in international traffic shall be taxable only in that Contracting
State unless the containers are used solely within the other Contracting State.

3.For the purposes of
this Article, interest earned incidentally on funds connected with the
operation of ships or aircraft in international traffic shall be regarded as
profits derived from the operation of such ships or aircraft, and the
provisions of Article 11 shall not apply in relation to such interest.

4.The provisions of
paragraph 1 shall also apply to profits from the participation in a pool, a
joint business or an international operating agency.

ARTICLE
9

Associated
Enterprises

1.Where:

a.an enterprise of a
Contracting State participates directly or indirectly in the management,
control or capital of an enterprise of the other Contracting State; or

b.the same persons
participate directly or indirectly in the management, control or capital of an
enterprise of a Contracting State and an enterprise of the other Contracting
State; and in either case conditions are made or imposed between the two
enterprises in their commercial or financial relations which differ from those
which would be made between independent enterprises, then any profits which
would, but for those conditions, have accrued to one of the enterprises, but,
by reason of those conditions have not so accrued, may be included in the
profits of that enterprise and taxed accordingly.

1.

2.Where a Contracting
State includes in the profits of an enterprise of that State and taxes
accordingly-profits on which an enterprise of the other Contracting State has
been charged to tax in that other State and the profits so included are profits
which would have accrued to the enterprise of the first-mentioned State if the
conditions made between the two enterprises had been those which would have
been made between independent enterprises, then that other State shall make
appropriate adjustment to the amount of the tax charged therein on those
profits. In determining such adjustment, due regard shall be had to the other
provisions of this Convention and the competent authorities of the Contracting
States shall, if necessary consult each other.

ARTICLE
10

Dividends

1.Dividends paid by a
company which is a resident of a Contracting State to a resident of the other
Contracting State may also be taxed in that other State.

2.However, such
dividends may also be taxed in the Contracting State of which the company
paying the dividends is a resident and according to the laws of that State, but
if the recipient is the beneficial owner of the dividends the tax so charged
shall not exceed 10 per cent of the gross amount of the dividends. This
paragraph shall not affect the taxation of the company in respect of the
profits out of which the dividends are paid.

3.The term
"dividends" as used in this Article means income from shares or other
rights, not being debt-claims, participating in profits, as well as income from
other corporate rights which is subjected to the same taxation treatment as
income from shares by the laws of the State of which the company making the
distribution is a resident.

4.The provisions of
paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,
being a resident of a Contracting State, carries on business in the other
Contracting State of which the company paying the dividends is a resident, through
a permanent establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein, and the
holding in respect of which the dividends are paid is effectively connected
with such permanent establishment or fixed base. In such case, the provisions
of Article 7 or Article 14, as the case may be, shall apply.

5.Where a company which
is a resident of a Contracting State derives profits or income from the other
Contracting State, that other State may not impose any tax on the dividends
paid by the company, except insofar as such dividends are paid to a resident of
that other State or insofar as the holding in respect of which the dividends
are paid is effectively connected with a permanent establishment or a fixed
base situated in that other State, nor subject the company's undistributed
profits to a tax on the company's undistributed profits, even if the dividends
paid or the undistributed profits consist wholly or partly of profits or income
arising in such other State.

ARTICLE
11

Interest

1.Interest arising in a
Contracting State and paid to a resident of the other Contracting State may be
taxed in that other State.

2.However, such
interest may also be taxed in the Contracting State in which it arises and
according to the laws of that State, but if the recipient is the beneficial
owner of the interest the tax so charged shall not exceed 10 per cent of the
gross amount of the interest. The competent authorities of the Contracting
States shall by mutual agreement settle the mode of application of this
limitation.

3.Notwithstanding the
provisions of paragraph 2, interest arising in a Contracting State shall be
exempt from tax in that State provided it is derived and beneficially owned by:

i.the
Government, a political sub-division or a local authority of the other
Contracting State; or

ii.

a.in the case of
Trinidad and Tobago, the Central Bank of Trinidad and Tobago, the Agricultural
Development Bank, the Export. Insurance Company, the National Housing
Authority, the National Insurance Board, the Home Mortgage Bank, the Deposit
Insurance Corporation, the Small Business Development Company, the Development
Finance Limited and the Trinidad and Tobago Mortgage Finance Company;

b.in the case of India,
the Reserve Bank of India, the Industrial Finance Corporation of India, the
Industrial Development Bank of India, the Export Import Bank of India, the
National Housing Bank, the Small Industries Development Bank of India and the
Industrial Credit and Investment Corporation of India (ICICI); or

i.

ii.

iii.any
other institution of agency as may be mutually agreed upon between the two
contracting States.

1.

2.

3.

4.The term
"interest" as used in this Article means income from debt-claims of
every kind, whether or not secured by mortgage and whether or not carrying a
right to participate in the debtor's profits, and in particular, income from
Government securities and income from bonds or debentures, including premiums
and prizes attaching to such securities, bonds or debentures, but shall not
include any item which is treated as a distribution under the provisions of
Article 10 of this Convention. Penalty charges for late payment shall not be
regarded as interest for the purpose of this Article.

5.The provisions of
paragraphs 1 and 2 shall not apply if the beneficial owner of the interest,
being a resident of a Contracting State, carries on business in the other
Contracting State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with such
permanent establishment or fixed base. In such case, the provisions of Article
7 or 14, as the case may be, shall apply.

6.Interest shall be
deemed to arise in a Contracting State when the payer is that State itself, a
political sub-division, a local authority or a resident of that State. Where,
however, the person paying the interest, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent establishment
or a fixed base in connection with which the indebtedness on which the interest
is paid was incurred, and such interest is borne by such permanent
establishment or fixed base, then such interest shall be deemed to arise in the
State in which the permanent establishment or fixed base is situated.

7.Where by reason of a
special relationship between the payer and the beneficial owner or between both
of them and some other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which would have been
agreed upon by the payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the payment shall
remain taxable according to the laws of each Contracting State, due regard
being had to the other provisions of this Convention.

ARTICLE
12

Royalties
and Fees for Technical Services

1.Royalties or fees for
technical services arising in a Contracting State and paid to a resident of the
other Contracting State may be taxed in that other State.

2.However, such
royalties or fees for technical services may also be taxed in the Contracting
State in which they arise and according to the laws of that State, but if the
recipient is the beneficial owner of the royalties or fees for technical
services the tax so charged shall not exceed 10 per cent of the gross amount of
the royalties or fees for technical services.

3.

a.The term
"royalties" as used in this Article means payments of any kind
received as a consideration for the use of, or the right to use, any copyright
of a literary, artistic or scientific work including cinematograph films or
recordings on any means of reproduction for use in connection with television
or radio broadcasting, any patent, trade-mark, design or model, plan, know-how,
computer software programme, secret formula or process, or any industrial,
commercial or scientific equipment or for information concerning industrial,
commercial or scientific experience;

b.the term "fees
for technical services" means payment of any kind in consideration for the
rendering of any managerial, technical or consultancy services including the
provision of services by technical or other personnel but does not include
payments for services mentioned in Articles 14 and 15 of this Convention.

1.

2.

3.

4.The provisions of
paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or
fees for technical services being a resident of a Contracting State, carries on
business in the other Contracting State in which the royalties or fees for
technical services arise, through a permanent establishment situated therein,
or performs in that other State independent personal services from a fixed base
situated therein, and the right or property in respect of which the royalties
or fees for technical services are paid is effectively connected with such
permanent establishment or fixed base. In such case the provisions of Article 7
or Article 14, as the case may be, shall apply.

5.Royalties or fees for
technical services shall be deemed to arise in a Contracting State when the
payer is that State itself, a political sub-division, a local authority or a
resident of that State. Where, however, the person paying the royalties or fees
for technical services, whether he is a resident of a Contracting State or not,
has in a Contracting State a permanent establishment or a fixed base in
connection with which the liability to pay the royalties or fees for technical
services was incurred, and such royalties or fees for technical services are
borne by such permanent establishment, or fixed base then such royalties or
fees for technical services shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.

6.Where, by reason of a
special relationship between the payer and the beneficial owner or between both
of them and some other person, the amount of the royalties or fees for
technical services having regard to the use, right or information for which
they are paid, exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the last mentioned amount. In
such case, the excess part of the payments shall remain taxable according to
the laws of each Contracting State, due regard being had to the other
provisions of this Convention.

ARTICLE
13

Capital
Gains

1.Gains derived by a
resident of a Contracting State from the alienation of immovable property
referred to in Article 6 and situated in the other Contracting State may also
be taxed in that other State.

2.Gains from the
alienation of movable property forming part of the business property of a
permanent establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property pertaining to a fixed base
available to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services, including such
gains from the alienation of such a permanent establishment (alone or with the
whole enterprise) or of such fixed base, may also be taxed in that other State.

3.Gains derived by an
enterprise of a Contracting State from the alienation of ships or aircraft
operated in international traffic or movable property pertaining to the
operation of such ships, aircraft shall be taxable only in that State.

4.Gains from the
alienation of shares of the capital stock of a company the property of which
consists directly or indirectly principally of immovable property situated in a
Contracting State may be taxed in that State.

5.Gains from the
alienation of shares other than those mentioned in paragraph 4 in a company
which is a resident of a Contracting State may be taxed in that State.

6.Gains from the
alienation of any property other than that referred to in paragraphs 1, 2, 3, 4
and 5, shall be taxable only in the Contracting State of which the alienator is
resident.

ARTICLE
14

Independent
Personal Services

1.Income derived by a
resident of a Contracting State in respect of professional services or other
activities of an independent character shall be taxable only in that State
except in the following circumstances, when such income may also be taxed in
the other Contracting State:

a.if he has a fixed
base regularly available to him in the other Contracting State for the purpose
of performing his activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that other State; or

b.if his stay in the
other State is for a period or periods aggregating 183 days or more in any
12-month period commencing or ending in the fiscal year concerned; in that
case, only so much of the income as is derived from his activities performed in
that other State may be taxed in that other State; or

c.if the remuneration
for his activities in the other Contracting State is paid by a resident of that
Contracting State or is borne by a permanent establishment or a fixed base
situated in that Contracting State and exceeds in the fiscal year a sum of
Rupees 40,000 or its equivalent in Trinidad and Tobago currency.

1.

2.The term
"professional services" includes especially independent scientific,
literary, artistic, educational or teaching activities as well as the
independent activities of medical practitioners, lawyers, engineers,
architects, dentists and accountants.

ARTICLE
15

Dependent
Personal Services

1.Subject to the
provisions of Articles 16, 18, and 19 salaries, wages emoluments and other
similar remuneration derived by a resident of a Contracting State in respect of
an employment shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment is so exercised,
such remuneration as is derived therefrom may also be taxed in that other
State.

2.Notwithstanding the
provisions of paragraph 1, remuneration derived by a resident of a Contracting
State in respect of an employment exercised in the other Contracting State
shall be taxable only in the first-mentioned State if:

a.the recipient is
present in the other State for a period or periods not exceeding in the
aggregate 183 days in any 12-month period commencing or ending in the fiscal
year concerned; and

b.the remuneration is
paid by, or on behalf of, an employer who is not a resident of the other State;
and

c.the remuneration is
not borne by a permanent establishment or a fixed base which the employer has
in the other State.

1.

2.

3.Notwithstanding the
preceding provisions of this Article, remuneration derived in respect of an
employment exercised aboard a ship or aircraft operated in international
traffic, by an enterprise of a Contracting State may be taxed in that State.

ARTICLE
16

Directors'
Fees

Directors'
fees and other similar payments derived by a resident of a Contracting State in
his or her capacity as a member of the Board of Directors of a company which is
a resident of the other Contracting State may also be taxed in that other
State.

ARTICLE
17

Artistes
and Sportspersons

1.Notwithstanding the
provisions of Articles 14 and 15 income derived by a resident of a Contracting
State as an entertainer, such as a theatre, motion picture, radio or television
artiste, or a musician, or as a sportsperson, from his personal activities as
such exercised in the other Contracting State, may also be taxed in that other
State.

2.Where income in
respect of personal activities exercised by an entertainer or a sportsperson in
his capacity as such accrues not to the entertainer or sportsperson himself but
to another person, that income may, notwithstanding the provisions of Articles
7, 14 and 15 be taxed in the Contracting State in which the activities of the
entertainer or sportsperson are exercised.

3.The provisions of
paragraphs 1 and 2, shall not apply to income from activities performed in a
Contracting State by entertainers or sportspersons if the visit to that State
is substantially supported by public funds of one or both of the Contracting States
or of political sub-divisions or local authorities thereof. In such a case, the
income is taxable only in the Contracting State of which the entertainer or
sportsperson is a resident.

ARTICLE
18

Pensions
and Social Security Payments

1.Subject to the provisions
of paragraph 2 of Article 19, pensions and other similar remuneration paid in
consideration of past employment to a resident of a Contracting State and any
annuity paid to such a resident may also be taxed in that State.

2.Notwithstanding the
provisions of paragraph 1, pensions paid and other payments made under a public
scheme which is part of the social security system of a Contracting State or a
political sub-division or a local authority thereof shall be taxable only in
that State.

ARTICLE
19

Government
Service

1.

a.Remuneration, other
than a pension, paid by a Contracting State or a political sub-division or a
local authority thereof to an individual in respect of services rendered to
that State or sub-division or authority shall be taxable only in that State.

b.However, such
remuneration shall be taxable only in the other Contracting State if the
services are rendered in that other State and the individual is a resident of
that State who:

i.is
a national of that State; or

ii.did
not become a resident of that State solely for the purpose of rendering the
services.

1.

2.

a.Any pension paid by,
or out of funds created by, a Contracting State or a political sub-division or
a local authority thereof to an individual in respect of services rendered to
that State or sub-division or authority shall be taxable only in that State;

b.However, such pension
shall be taxable only in the other Contracting State if the individual is a
resident of, and a national of, that other State.

1.

2.

3.The provisions of
Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of
services rendered in connection with a business carried on by a Contracting
State or a political sub-division or a local authority thereof.

ARTICLE
20

Students
and Apprentices

1.A student or business
apprentice who is or was a resident of a Contracting State immediately before
visiting the other Contracting State and who is present in that other
Contracting State solely for the purpose of his education or training shall,
besides grants, loans and scholarships, be exempt from tax in that other State
on:

a.payments made to him
by persons residing outside that other State for the purposes of his
maintenance, education or training; and

b.remuneration from
employment in that other State for an amount not exceeding the amount which is
exempt from tax under the laws of that other Contracting State for any fiscal
year, provided that such employment is directly related to his studies or is
undertaken for the purpose of his maintenance.

1.

2.The benefit of this
Article shall extend only for such period of time as may be reasonable or
customarily required to complete the education or training undertaken, but in
no event shall any individual have the benefits of this Article for more than
seven consecutive years from the date of his first arrival in that other
Contracting State.

ARTICLE
21

Professors,
Teachers and Research Scholars

1.A professor, teacher
or research scholar who is or was a resident of the Contracting State
immediately before visiting the other Contracting State for the purpose of
teaching or engaging in research, or both, at a university, college, school or
other approved institution in that other Contracting State shall be exempt from
tax in that other State on any remuneration for such teaching or research for a
period not exceeding two years from the date of his arrival in that other
State.

2.This Article shall
not apply to income from research, if such research is undertaken primarily for
the private benefit of a specific person or persons.

3.For the purposes of
this Article and Article 20, an individual shall be deemed to be a resident of
a Contracting State if he is resident in that State in the fiscal year in which
he visits the other Contracting State or in the immediately preceding fiscal
year.

4.For the purposes of
paragraph 1 "approved institutions" means an institution which has
been approved in this regard by the competent authority of the State in which
the institution is located.

ARTICLE
22

Other
Income

1.Items of income of a
resident of a contracting State, wherever arising, not dealt with in the
foregoing Articles of this Convention shall be taxable only in that State.

2.The provisions of
paragraph 1 shall not apply to income, other than income from immovable
property as defined in paragraph 2 of Article 6:

a.if the recipient of
such income, being a resident of a Contracting State, carries on business in
the other Contracting State through a permanent establishment situated therein,
or performs in that other State independent personal services from a fixed base
situated therein, and the right of property in respect of which the income is
paid is effectively connected with such permanent establishment or fixed base.
In such case the provisions of Article 7 or Article 14, as the case may be,
shall apply;

b.if the resident of a
Contracting State derives income from sources within the other Contracting
State in the of lotteries, crossword puzzles, races including horse races, card
games and other games of any sort or gambling or betting of any form or nature
whatsoever, such income may be taxed in the other Contracting State.

1.

2.

3.Notwithstanding the
provisions of paragraphs 1 and 2, items of income of a resident of a
Contracting State not dealt with in the foregoing Articles of this Convention
and arising in the other Contracting State may also be taxed in that other State.

ARTICLE
23

Elimination
of Double Taxation

1.The laws in force in
either of the Contracting State will continue to govern the taxation of income
in the respective Contracting States except where provisions to the contrary
are made in this Convention.

2.In the case of
Trinidad and Tobago, double taxation shall be eliminated as follows: Where a
resident of Trinidad and Tobago derives income which, in accordance with the
provisions of this Convention, may be taxed in India, Trinidad and Tobago shall
allow as a deduction from the tax on the income of that resident an amount
equal to the income-tax paid in India, whether directly or by deduction at
source. Such deduction shall not, however, exceed that part of the income-tax
as computed before the deduction is given, which is attributable to the income
which may be taxed in India.

3.In the case of India,
double taxation shall be eliminated as follows: Where a resident of India
derives income which, in accordance with the provisions of this Convention, may
be taxed in Trinidad and Tobago, India shall allow as a deduction from the tax
on the income of that resident an amount equal to the income-tax paid in
Trinidad and Tobago, whether directly or by deduction at source. Such deduction
shall not, however, exceed that part of the income-tax, as computed before the
deduction is given, which is attributable to the income which may be taxed in
Trinidad and Tobago.

4.The tax payable in
the Contracting State mentioned in paragraphs 2 and 3 of this Article shall be
deemed to include the tax which would have been payable but for the tax
incentives granted under the laws of the Contracting State and which are
designed to promote economic development.

5.Income which in
accordance with the provisions of this Convention, is not to be subjected to
tax in a Contracting State, may be taken into account for calculating the rate
of tax to be imposed in that Contracting State.

ARTICLE
24

Non-discrimination

1.Nationals of a
Contracting State shall not be subjected in the other Contracting State to any
taxation or any requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to which nationals of
that other State in the same circumstances are or may be subjected. This
provision shall, notwithstanding the provisions of Article 1, also apply to
persons who are not residents of one or both of the Contracting States.

2.The taxation on a
permanent establishment which an enterprise of a Contracting State has in the
other Contracting State shall not be less favourably levied in that other State
than the taxation levied on enterprises of that other State carrying on the
same activities. This provision shall not be construed a preventing a
Contracting State from charging the profits of a permanent establishment which
a company of the other Contracting State has in the first-mentioned State at a
rate of tax which is higher than that imposed on that profits of a similar
company of the first-mentioned Contracting State, nor as being in conflict with
the provisions of paragraph 3 of Article 7 of this Convention.

3.Nothing in this
Article shall be construed as obliging a Contracting State to grant to the
residents of the other Contracting State any personal allowances, reliefs or
deductions for taxation purposes on account of civil status or family
responsibilities which it grants to its own residents.

4.Except where the
provisions of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12
apply, interest, royalties and fees for technical services and other
disbursements paid by an enterprise of a Contracting State to a resident of the
other Contracting State shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same conditions as if they
had been paid to a resident of the first-mentioned State.

5.Enterprises of a
Contracting State, the capital of which is wholly or partly owned or
controlled, directly or indirectly by one or more residents, of the other
Contracting State, shall not be subjected in the first-mentioned State to any
taxation or any requirement connected therewith which is other or more,
burdensome than the taxation and connected requirements to which other similar
enterprises of the first-mentioned State are or may be subjected.

6.The provisions of
this Article shall, notwithstanding the provisions of Article 2, apply to taxes
of every kind and description.

ARTICLE
25

Mutual
Agreement Procedure

1.Where a person
considers that the action of one or both of the Contracting States result or
will result for him in taxation not in accordance with the provisions of this
convention, he may, irrespective of the remedies provided by the domestic law
of those States, present his case to the competent authority of the Contracting
State of which he is a resident or, if his case comes under paragraph 1 of
Article 24, to that of the Contracting State of which he is a national. The
case must be presented within three years from the first notification of the
action resulting in taxation not in accordance with the provisions of this
Convention.

2.The competent
authority shall endeavour if the objection appears to it to be justified and if
it is not itself able to arrive at a satisfactory solution, to resolve the case
by mutual agreement with the competent authority of the other Contracting
State, with a view to the avoidance of taxation which is not in accordance with
this Convention. Any agreement reached shall be implemented notwithstanding any
time limits in the domestic law of the Contracting States.

3.The competent
authorities of the Contracting States shall endeavour to resolve by mutual
agreement any difficulties or doubts arising as to the interpretation or
application of this convention. They may also consult together for the
elimination of double taxation in cases not provided for in this Convention.

4.The competent
authorities of the Contracting States may communicate with each other directly
for the purpose of reaching an agreement in the sense of the preceding
paragraphs. The competent authorities shall, through consultations, develop
appropriate bilateral procedures, conditions, methods and techniques for the
implementation of the mutual agreement procedure provided for in this Article.

ARTICLE
26

Exchange
of Information

1.The competent
authorities of the Contracting States shall exchange such information
(including documents), as is necessary for carrying out the provisions of this
Convention or of the domestic laws of the Contracting States concerning taxes
covered by this Convention insofar as the taxation thereunder is not contrary
to this Convention in particular for the prevention of fraud or evasion of such
taxes. The exchange of information is not restricted by Article 1. Any information
received by a Contracting State shall be treated as secret in the same manner
as information obtained under the domestic laws of that State and shall be
disclosed only to persons or authorities (including Courts and administrative
bodies) involved in the assessment or collection of, the enforcement or
prosecution in respect of, or the determination of appeals in relation to, the
taxes covered by this Convention. Such persons or authorities shall use the
information. Such persons or authorities shall use the information only for
such purposes. They may disclose the information in public Court proceedings or
in judicial decision.

2.In no case shall the
provisions of paragraph 1 be construed so as to impose on a Contracting State
the obligation:

a.to carry out
administrative measures at variance with the laws and administrative practice
of that or of the other Contracting State;

b.to supply information
or documents which are not obtainable under the laws or in the normal course of
the administration of that or of the other Contracting State;

c.to supply information
or documents which would disclose any trade, business, industrial, commercial
or professional secret or trade process, or information, the disclosure of
which would be contrary to public policy.

ARTICLE
27

Diplomatic
Agents and Consular Officers

Nothing
in this Convention shall affect the fiscal privileges of diplomatic agents or
consular officers under the general rules of international law or under the
provisions of special agreements.

ARTICLE
28

Collection
Assistance

1.The Contracting
States undertake to lend assistance to each other in the collection of taxes to
which this Convention relates, together with interest, costs, and civil
penalties relating to such taxes, referred to in this Article as a
"revenue claim".

2.Request for
assistance by the competent authority of a Contracting State in the collection
of a revenue claim shall include a certification by such authority that, under
the laws of that State, the revenue claim has been finally determined. For the
purposes of this Article, a revenue claim is finally determined when a
Contracting State has the right under its internal law to collect the revenue
claim and the taxpayer has no further rights to restrain collection.

3.Amount collected by
the competent authority of a Contracting State pursuant to this Article shall
be forwarded to the competent authority of the other Contracting State.
However, the first-mentioned Contracting State shall be entitled to
reimbursement of costs, if any, incurred in the course of rendering such
assistance to the extent mutually agreed between the competent authorities of
the two States.

4.Nothing in this
Article shall be construed as imposing on either Contracting State the
obligation to carry out administrative measures of a different nature from
those used in the collection of its own taxes or those which would be contrary
to this public policy.

ARTICLE
29

Entry
into Force

1.The Contracting
States shall notify each other in writing, through diplomatic channels, of the
completion of the procedures required by the respective laws for the entry into
force of this Convention.

2.This Convention shall
enter into force thirty days after the receipt of the later of the
notifications referred to in paragraph 1 of this Article.

3.The provisions of
this Convention shall have effect:

a.In Trinidad and
Tobago:

i.in
respect of taxes withheld at source, to income paid or credited on or after
first January in the calendar year next following that in which this Convention
enters into force;